Uber and Amazon transforming logistics industry
Amazon & Uber disrupting logistics with autonomous trucks / cars, delivery drones, and on-demand services… Logistics has changed!
Discover here how Uber and Amazon are disrupting this $8.1tn market.
Since 2009, the third-party logistics industry has been constantly growing and it is expected to continue this growth. (Statista.com) In 2014, the logistics industry was estimated to be worth 8,3% of the GDP, $1,45 trillion was spent. (Gocataput.com) These statistics show what a crucial role this industry has on a national level.
Logistics is not only an important and successful economic sector for U.S., though. At the same time, it is also a very fragmented sector where much is at stake:
How can we transport goods from A to B, coping with the challenges of reducing costs, reducing pollution and increasing efficiency?
Not only are traditional logistics service providers working on innovative solutions, but also companies from originally other sectors see a great potential in this transformation-period, Amazon and Uber being among them.
Uber brings logistics into the digital age
Although Uber is better known for its taxi app, it is very interesting to note that their new field of disruption is freight traffic. They have developed new applications called UberRush and Uber Freight. UberRush’s focus is on last mile delivery: similar to their original business model, freelancers can now become parcel carriers. Uber Freight, on the other hand, is a digital forwarding company bringing together carrier and shippers for long-haul delivery.
With the combination of the two, they offer a new alternative for those in need of logistic services. The model makes it possible to dispense intermediate transport companies or brokerage firms and thus reduce costs but these direct contact platforms also allow greater flexibility and increased efficiency.
Amazon invests in logistical innovations
Amazon seems to follow a slightly different strategy: With Amazon Flex, Seller Flex or the Amazon Prime Air program Amazon seems to be determined to dominate the supply chain with their own services. As a result, they can reduce costs and become independent from their current third party delivery service providers.
Will Amazon actually compete with DHL and FedEx?
It appears so and it is also not completely absurd to assume that Amazon will one day open its delivery services to external companies as well.
The ultimate goal: automation
In addition to digital, innovative solutions, we also see developments in automation. All industry giants, Uber and Amazon, but also Google and Tesla, are currently devoting themselves to development of autonomous vehicles. The reason? The cost of course! A vehicle without a driver costs much less, not to mention the optimization opportunities which lie in autonomous driving.
For the time being, Waymo, Uber, & Tesla are the one that have developed autonomous trucks which are currently under testing. In 2016, Uber bought Otto – a manufacturer of autonomous trucks – and completed its first successful delivery shortly afterwards in Colorado.
We will still have to wait, though, until self-driving trucks take over the road. Both Uber and Tesla’s autonomous vehicles have caused fatal accidents in the testing period which shows there’s still immense work to be done before this futuristic technology can be fully utilized. Experts assume that the completely autonomously driving trucks will not be on the roads until 2030.
Uber and Amazon transforming logistics industry
With what other developments are Amazon and Uber shaking up the logistics industry and how will they shape the future of logistics? Take a look at the following infographic to find out more…
Molly Connell is responsible for Online Marketing at TradeMachines. As a member of the Berlin-based, fast-growing online start-up company which provides a metasearch website for used industrial equipment, her job is to enhance brand awareness and visibility.
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